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From: White House Press Office <noreply@messages.whitehouse.gov>
To: Owens, Missy
Sent: Fri Aug 19 01:01:49 2011
Subject: FW: VP Pool 8/19 #2: VPs remarks at business dialogue


From: Memoli, Michael [mailto:michael.memoli@latimes.com]
Sent: Friday, August 19, 2011 12:24 AM
To: Dudley, Amy; Allen, Elizabeth M.; Barkoff, Kendra; Richard L Buangan (BuanganRL@state.gov)
Subject: VP Pool 8/19 #2: VPs remarks at business dialogue

Picking up from where the previous pool report left off, Vice President Xi was addressing the business leaders at the start of the U.S.-China dialogue. Note: there was a simultaneous translation of each leader’s remarks.

Highlights: Xi expressed confidence that there “will never be a so-called hard landing for the Chinese economy.” He also said Biden briefed him on the steps America was taking to spur its economy and tackle its deficit, and expressed China’s confidence that the U.S. economy “is highly resilient and has a strong capacity for self-repairment.

Biden teased the announcement of trade deals involving Chinese companies investing in the United States. More details to come on that.


In his remarks, Xi said it is important for U.S. and Chinese businesses to “work together to pursue common development,” particularly “in the face of a complex and severe situation of the world economy.”

He outlined four points to achieve that.

First, to “reinforce confidence.” He pointed to “drastic fluctuations” in the financial markets and intensifying “destabilizing factors” affecting the world economic recovery.
For its part, China would work to restore confidence by continuing to pursue “a proactive fiscal policy and prudent monetary policy.”

“We’re going to strike a proper balance between fast and steady growth, adjustment of economic structure and managing inflation expectations,” he said. “We are confident that we are able to keep steady and fast economic growth. There will never be a so-called hard landing for the Chinese economy.”

On the U.S. budget situation, Xi said China sees the American economy as “highly resilient, and has a strong capacity for self-repairment. We believe that the U.S. economy will achieve even better development as it rises to challenges.”

Second point: the need for a “long term perspective. Thirty years after the normalization of relations, “China has a more enabling policy environment, improved infrastructural facilities, better services, and a larger pool of human resources.” He said China is working through the 12th five-year plan to “accelerate the shift of growth model and stimulate greater domestic demand.”

China will import $8 trillion in commodities by 2015, and total sales in China are expected to reach 31 trillion yuan, he said, which “will create greater business opportunities for American businesses and businesses of other countries.”

Third point: the need “to deepen cooperation as China’s reform, opening-up and modernization drive gather momentum.”

He discussed the increasing number of U.S. businesses that are providing services and products to Chinese consumers, and that more Chinese businesses are going to the U.S. to start businesses. Specifically, he mentioned an electric manufacturing corporation that is opening a branch in Delaware. VPOTUS signaled his approval for that news.

“There is competition in our cooperation. Yet such competition is healthy based, based on mutual learning and mutual reinforcement. In a fundamental sense, it is conducive to our common development.

Fourth point: “We need to be mutually inclusive.”

The two nations need to approach “differences and friction” with an “inclusive mind,” Xi said, and “properly handle these differences through equal consultations.”

“We should not politicize or sensationalize the trade issues,” Xi said.

China would continue to run the country “according to the law, and make continual improvements to our laws and regulations relating to foreign business cooperation.” That includes intensifying protection of intellectual property rights, and treating businesses equally “in terms of the accreditation of indigenous innovation products and government procurement.”

Xi said China hoped the U.S. would “eliminate the interferences of trade and investment protectionism,” including the easing of export restrictions of high-tech products to China.

“I believe as long as we treat each other as equals and embrace mutual understanding and mutual accommodation, we will have even better growth in our business cooperation,” he said.

Biden then spoke, promising to be brief. “I’m mainly here to listen.”

Biden said he agreed with Xi’s confidence in the U.S. economy. “I have absolute, unequivocal confidence in the strength and vitality and the growth of the American economy. No one’s ever made money betting against America,” he said.

He also agreed in the benefits of competition.

“It has awakened us. It has regenerated us. It is nothing but welcome on the part of the United States,” he said.

Biden said he and President Obama welcome and encourage direct investment in the U.S. by Chinese businesses. “It means American jobs,” he said.

He said the U.S. is “really encouraged” by the 12th-five year plan and the reordering of China to a more consumer-based economy.

Despite progress, there are “real and perceived barriers” to be dealt with, naming the Visa process in the United States, and market access in China.

“One of the things I have a bad reputation for is being straightforward. And I’m really pleased that the vice president has been straightforward as well,” Biden said. “Only friends and equals can serve each other by being straightforward and honest with them about the perceived injustices, the perceived tilting of a playing field.”

But the “trajectory” of the U.S.-China relationship is “nothing but positive.”

Bilateral trade and investment between the United States and China … is growing rapidly in both directions. “We’d like it to grow even more rapidly in terms of investment of the United States because it creates jobs, and it creates economic opportunities in both countries.”

Teasing the trade deals to come, Biden said they would “have more good news later today about greater access and also continued development and investment both ways.”

An administration official provided the following details on background about the coming announcement: “A number of U.S. businesses concluded commercial deals with China valued at nearly $1 billion ($965 million) in increased U.S. exports or new investment in the United States.”

One final note: today’s initial pool spray involving Xi and Biden went smoothly. Reporters were able to listen to both Xi and Biden’s remarks without interruption, a positive change from yesterday when Chinese officials attempted to remove us before Biden had finished remarks.

Pool is now holding at hotel, awaiting later movements for VPOTUS meetings with Premier Wen and President Hu.

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